KLM Aksiba Finvest plans to issue a secure NCD with reservations starting from November 14, 2024. KLM Akshiva Finvest is a systemically important non-deposit-taking NBFC in India. KLM Axiva Finvest NCDs have interest rates of up to 11% and yields of up to 11.1%. Your money will double in 79 months. Should you invest in the KLM Axiva Finvest NCD issue for November 2024? What are the risk factors to consider before investing in KLM Axiva NCD 2024 stocks? Let’s have a complete review of these NCD bonds.
About KLM Axiva Finvest Limited
The Company is a systemically important non-banking financial company that does not accept deposits and primarily serves low- and moderate-income individuals and businesses with limited or no access to formal banks or financial channels. Masu.
The company operates primarily in four business areas:
(i) Money lending business where household jewelry is pawned and money is loaned.
(ii) Loans for small and medium-sized businesses
(iii) personal loan;
(iv) Microfinance loans.
As of September 30, 2024, the company had 670 branches across six states – Kerala, Karnataka, Tamil Nadu, Telangana, Andhra Pradesh and Maharashtra, managed from its headquarters in Kochi. .
KLM Axiva Finvest NCD – November 2024 issue detail
| Subscription start date | November 14, 24 |
| Subscription end date | November 28, 24 |
| Issued securities name | KLM Axiva Finvest Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 5 billion rupees |
| Publish size (option to keep on subscript) | 5 billion rupees |
| Total publication size | 100 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | from me to x |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 400 days, 16, 18, 79 months, 2, 3, 5 years |
| Interest payment frequency | Monthly, annual, per maturity |
| Listed | Within 6 business days for BSE |
| lead manager | Vivro Financial Services Private Limited |
| bond trustee | Vistra ITCL (India) Limited |
KLM Aksiba Finvest NCD November 2024 – Interest Rates
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | Ⅷ | IX | × |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | cumulative | monthly | monthly | yearly | monthly | yearly | monthly | yearly | cumulative |
| tenure | 400 days | 16 months | 18 months | 2 years | 2 years | 3 years | 3 years | 5 years | 5 years | 79 months |
| Coupon (% per year) | 9.50% | N.A. | 9.85% | 10.00% | 10.25% | 10.25% | 10.50% | 10.75% | 11.00% | N.A. |
| Effective yield (% per year) | 9.92% | 9.96% | 10.31% | 10.47% | 10.25% | 10.75% | 10.50% | 11.30% | 11.00% | 11.10% |
| Amount at maturity (Rs.) | 1,000 | 1,135 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 2,000 |
KLM Axiva Finvest NCD November 2024 – Ratings
The protected NCD is rated BBB-/Stable by India Ratings and Research and ACUITE BBB by Acuite Ratings and Research Limited.
The NCD rating indicates that instruments with this rating are considered to have medium security with respect to timely repayment of financial obligations and carry medium credit risk.
KLM Axiva Finvest NCD November 2024 – Are these collateralized NCD bonds?
Senior (claims of debentureholders holding NCDs shall have priority over claims of unsecured creditors, subject to applicable statutory and/or regulatory requirements).
The NCD constitutes a secured debt of the Company and is a first-class equivalent of all current and future existing secured creditors with respect to all personal property, including books and accounts receivable, cash and bank balances, other personal property, loans and advances. shall have the right to make a claim. The Company will match the value of the outstanding NCDs by 1x, plus accrued interest.
What about the company’s profits?
The profit is as follows.
- Year ended March 2020 – 50.6 million rupees
- Year ended March 2021 – Rs 705.8 million
- Year ending March 2022 – 11.383 million rupees
- Year ending March 2023 – 18.331 million rupees
- Year ending March 2024 – 23.028 million rupees
KLM Axiva Finvest NCD November 2024 – Why invest?
- These NCDs offer attractive interest rates of up to 10.75% and yields of up to 11.1%.
- The company has been consistently profitable in recent years, and its profit margins have also improved. You should always invest in companies with strong financial foundations that continue to grow.
- Issue a Secured NCD. If a financial crisis occurs and the company closes down for any reason, investors in NCDs have priority repayment of their capital with interest. Therefore, it is safe to invest in such safe NCD options. However, preference will only be given to NCD investors and there is no guarantee that the amount will be repaid in full in such cases.
KLM Axiva Finvest NCD November 2024 – Why not invest?
- We have received show cause notices from the RBI and any adverse action could affect our business.
- These companies are subject to regulatory oversight and may be subject to penalties and restrictions if they fail to comply with regulatory observations during periodic inspections, which could impact their business and operations. Possibly.
- The Company, its promoters and directors and other companies are subject to search and seizure by the Indian income tax authorities.
- Its financial performance is particularly sensitive to changes in interest rates.
- A high number of customer defaults or delays in loan repayments could adversely affect our business.
- If we are unable to manage the level of NPAs in our loan assets, our financial condition and results of operations may suffer.
- Investors should refer to all other internal and external factors set out below. KLM Axiva Finvest November 2024 NCD Prospectus.
How can I apply for the KLM Axiva Finvest NCD November 2024 issue?
KLM Axiva Finvest NCD issue is available only in demat format. You can apply online or through the website of the broker where you maintain your demat account. The complete form can be downloaded from the Lead Manager website. Please refer to the prospectus for further information on this.
Is KLM Aksiva NCD safe?
The KLM Acceiva NCD is rated IND BBB-/Stable by IND Ratings and ACUITE BBB by Acuite Ratings. NCD bonds with such ratings are considered high risk.
KLM Aksiba Finvest NCD November 2024 – To invest or avoid?
KLM Aksiba Finvest is offering a secure NCD as part of its November 2024 issue. It offers high interest rates of up to 10.75%, with yields of up to 11.1%. These are also secure NCDs.
On the other hand, these bonds have a lower credit rating of BBB-Stable by IND Ratings and Acuite Ratings, making them more risky. If such an NBFC company goes into distress, your capital may be at risk. Let us not forget the previous DHFL crisis and the delay in repayment of principal to NCD investors by many NBFC companies.
Investors should consider the pros and cons before investing in such NCDs.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified – Investment Advisor and a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. Contact him at suresh@myinvestmentideas.com.
